Cautious optimism in the smartphone market. Online sales, growing premium segment

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According to GfK Market Intelligence, the category’s overall sales in terms of units for offline retail increased by 4%, while online retail sales increased by 29% in the current fiscal year. in October 2021 compared to 2020. During the same period, the contribution of online channels to the smartphone market accounted for 40% in terms of sales units and 41% in terms of sales value against 35% in 2020. This reflects growing consumer confidence and the digitization of shopping journeys fueling the contribution of online retailing to overall sales in the smartphone category.

GfK’s market intelligence reveals overall smartphone sales growth, price segments as well as geographic market penetration from January 2021 to October 2021 for the market.

Looking at price trends, point-of-sale data highlighted a 56% sales unit increase for premium smartphones ranging from ??30,000 to ??40,000. Sales also increased by 41% for smartphones priced above 40,000, underscoring the growing demand for premium products in the Indian smartphone market.

Kartik Vasudevan, Sales Manager at GfK India, said: “As markets have shifted from the norm of ‘want’ to that of ‘need’, it is not just about the product / device, but of the consumer’s “lifestyle”. Consumers turned to technology to keep working and learning while staying at home, which triggered a structural change in shopping behavior. As the domestic standard continues, consumers are eager to invest in products that promise quality and longevity. “

The information from GfK also reveals the geographic penetration of the smartphone market. Global sales of Level 5 and above smartphones representing less than 50,000 inhabitants saw volume growth of 11% in offline retail in the current fiscal year in October 2021/2020, followed by a 7% increase in level 3 cities.

Kartik also added: “The smartphone market is still dominated by a price segment below 15,000, however, there has been an increase in sales of high-end products as mobile phones have essentially become the first point of contact. or digital device to access the Internet. For some consumers, this is sort of their first computer and with 5G leading the way, this trend could accelerate the price hike.

There is cautious optimism in the market which will be governed by the interaction of domestic manufacturing, imports, transportation costs and commodity prices.

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